Small business owners concerned about soaring electricity bills amid heat wave

An employee serves food at a restaurant in Seoul, June 16. Korea Times file

By Kim Jae-heun

A 41-year-old French restaurant owner surnamed Lee is afraid to see his upcoming electricity bill for July because he has had air conditioners running all day long over the past few weeks.

“Last month, we kept the air conditioners on during the heavy downpours to keep the store dry. Now we are dealing with the unprecedented heatwave. I am really concerned about the electricity bill that will arrive later this month,” said Lee, who runs the restaurant in Yongin, Gyeonggi Province.

“Usually, we pay almost double the amount during the extreme summer or winter than during spring or fall. The high power rate comes from mostly running air conditioners full time. There is nothing much we can do but pay the bill,” he said.

A 33-year-old salad restaurant owner surnamed Kim also said extreme weather conditions always create additional financial burdens on small businesses, be it gas or electricity charges.

“Last month, I paid about 700,000 won ($538.67) for electricity,” said Kim, who lives in Gimpo, Gyeonggi Province. “I usually pay 400,000 won, at most. It is the air conditioner that accounts for the hike in the power rate. Vegetable prices are also rising due to the extreme heat. Restaurant owners are facing the toughest time. The government has to give us some sort of tax benefit, so we continue our business, not to talk about making money.”

Like Lee and Kim, many small business owners are complaining about the current electricity rate system and are urging the government to come up with a solution.

The Korea Federation of Micro Enterprise (KFME) is arguing for immediate cuts to electricity rates, at least for small business owners now.

“From last year to the second quarter of this year, electricity rates rose five times to increase 39.6 percent. During the period, a total of 40.4 won per kilowatt-hour (kWh) has been added,” KFME said. “The government froze the electricity charge in the third quarter of this year but it really doesn't help much. We need an immediate tax cut.”